From Yahoo finance discussionsReading this thread and seems to be some less understood angles to this news... for your consideration:
1. The sale is being made for shares instead of cash because AGFAF is betting the share price of the paid shares increases over the short-term and therefore increasing the cash sum equivalent.
2. The deal is structured so that an additional payment in shares will be due if revenue goals are met by a he purchasing company. Again, this is a ‘bet’ by AGFAF that the purchasing companies revenues will increase therefore driving the share price up by the time the revenue goal is met and the additional payment in shares is due.
3. New CEO was very clear on call for annual shareholders meeting that each asset would be analyzed and retained ONLY if that was the best option to drive revenue in the near-term.
4. AGFAF has seemed to me like they had a big imagination and big dreams with a less than ideal means of executing real revenue generation by all the different arms of their business.
The call to ‘focus’ on a specific asset or assets is one that was made based on the reality on the ground. It does the company no-good to hold assets in flower growth, edibles manufacturing and sales across two continents if they can’t gear-up those assets to generate revenue and profits in the near-term.
5. I believe the first two moves by the new CEO were consistent with her comments and vision at the annual shareholders meeting and anyone saying this is surprising or seems ‘shady’ was simply not in attendance a couple weeks ago via conference call.
It’s a new day for AgraFlora... and the sun is shining in Delta. Cheers to you.